Auxílio Brasil loan to start in September, says government

The Minister of Citizenship, Ronaldo Bento, said this Wednesday (17) that payroll-deductible loans by beneficiaries of Auxílio Brasil should begin by the beginning of September.

After the issue of Bolsonaro’s decree that regulated the granting of this loan, the Ministry of Citizenship works on complementary rules to start operations.

“We already have almost 17 financial institutions approved by the Ministry of Citizenship capable of granting payroll loans. It is a number that shows the market’s interest in making credit available to this population”, he said, during an interview with journalists at Palácio do Planalto.

Payroll loans are granted by financial institutions with automatic deduction of installments from the salary or benefit payroll. Beneficiaries of Auxílio Brasil will be able to make loans of up to 40% of the benefit amount and authorize the Union to deduct the amount of the installment every month, until discharge.

The Ministry of Citizenship did not inform which 17 financial institutions are able to grant payroll-deductible loans to beneficiaries.

Understand how payroll loans work

The payroll loan is a loan deducted directly from the payroll, which reduces the interest offered. In the case of payroll-deductible loans from the INSS (National Social Security Institute), the maximum interest is defined by the Social Security Council.

A substitute for Bolsa Família, Auxílio Brasil pays R$400 monthly to families considered to be socially vulnerable. From August to December, the program will transfer the minimum amount of R$ 600 to more than 20 million families registered in CadÚnico (Cadastro Único).